The Economic Impact and brand equity of Victoria from hosting the F1 Australian Grand Prix

Executive Summary

Organizing events, seems like a daunting task, as the late ’90s concept, which grabbed the attention of the World, was a key element needed to manage any type of event. Regardless of the type and size of the event, the mental and physical hard work is done only slightly differently. Formula 1 racing is recognized as the pinnacle of motorsport across the globe. It attracted large audiences, international TV viewers, media interest, and huge sponsorships. The F1 season is held annually in major cities of the world. Since the first Formula 1 Australian Grand Prix in 1996, Victoria has celebrated its birthday every year in March or early April at Albert Park, Melbourne. The Grand Prix is ​​funded and advertised through the Australian Grand Prix Corporation (AGPC) and is partly funded by the Victorian Government. There are lots of activities in it. First of all, the first step is to form a committee and assign different positions to each committee. Here you will be aware of all the theoretical concepts that you have learned so far: public relations, human resource planning, logistics, human skills, control, accounting, and complete event management.

Introduction

The increasing number and importance of festivals is a worldwide phenomenon. Cultural experts, government agencies involved in cultural policy and financial decision-making, and the general public are attracted by the arts, and social and economic backgrounds of the festival(Newell and Grashina, 2003). Event management is a fast-growing multi-billion dollar industry that regularly hosts major shows and events (PMP, 2014).

Formula 1 racing is recognized as the pinnacle of motorsport. It attracted large audiences, international TV viewers, media interest, and massive sponsorships. The F1 season is held annually in major cities in the world. Since the first Formula 1 Australian Grand Prix in 1996, Victoria has celebrated its fourth birthday every year in March or early April at Albert Park, Melbourne. The Grand Prix is ​​funded and advertised through the Australian Grand Prix Corporation (AGPC) and is partly funded by the Victorian Government. The Victorian Government is promoting Melbourne and Victoria to the arena, and as part of a larger way to provide and prepare a calendar of annual world events that bring significant economic, social, and cultural benefits to the state, the Grand Prix. These benefits include challenge creation, business development, state investment, visitor attraction, improved infrastructure, and community participation.

The objective of the Project

This report describes the economic impact and brand equity of Victoria from hosting the F1 Australian Grand Prix.

Project Scope

The goal of the project is to use the network to receive feedback, and entertainment, invite participants, supervise the event, and organize a race celebration party after the event. This event not only showcases the best works of art created by participants but also food, music, and other entertainment.

User acceptance criteria

The Victorian Calendar of Events is arguably one of the most prestigious and hit activities across the world. A report produced by the Victorian Major Events Company (VMEC) predicted that a prime event in Victoria could add an anticipated $1.4 billion in economic advantages in the coming year. Major activities attract more than 230,000 global visitors to Victoria every 12 months, accounting for 23% of Victoria’s general foreign visitors.

• It attracts a huge number of visitors to the country and guarantees sizable branding and positioning of Melbourne and Victoria, each across the world and internationally.
• Melbourne Cricket Ground, its infrastructure and the city of Melbourne, and the Olympic Park are loved by way of the wider network all year round.
• Create nearby business stories that could upload fees to other Victorian activities and open new opportunities for international business.
• Organizes exhibitions for small sporting and cultural occasions, and provides services for interstate and global visitors.

Project boundaries or exclusions

The venture includes developing a task plan that consists of the layout, creation, and implementation of subsequent Australian Grand Prix. Also, the competition operations may be managed, and submit clean-up of the site can be accomplished.

On the other hand, the task excludes:

• The construction of the car track
• Logistics are involved in bringing the shipping containers containing cars to the site(Morris and Hough, 1987)

Project constraints

The constraints of the project are:

• Time – This integrated project plan is required to be done by December 13, 2020, so the project team can only work for a limited period of time. (Pressure of deadline)
• Budget – The requirement is to complete the project under the estimated cost is $ 150,000 USD. The project team has a limited budget to execute this project. (Sponsor imposed funding limits)
• Schedule – Everything should be completed no later than June 30, 2020, which means the full implementation of the project such as work completed, reviewed, approved, and ready

Resources – Inside and outside resources are limited(Turner, 2009)

Stakeholder Management Plan

The Australian Grand Prix is one of the most famous and biggest events in Australia and opens the F1 season every year. Due to this, different types of stakeholders work together for the success of the event. Victoria State Government and the City of Melbourne represent the primary stakeholder and invest huge amounts to set up the event. Also, there are the sponsors (Rolex, Jaguar, Heineken, Porsche, Australian Air force, etc), the broadcast partner, supporters, event planners, drivers, and Automakers. The stakeholder’s management plan for the complete project is as under:

Stakeholders	Roles
Victoria State Government	Ensure the safety of all spectators Financial Support
City of Melbourne	Amenities Public Transport to get in and out of the Albert Park Grand Prix Circuit Complex
Sponsors	Financial Support Entertainments
Drivers	drive the F1 cars Brand events
Broadcast partner	Telecast the event to the world Marketing actions Interactions with the spectators and with viewers around the world
Automakers	Promoting the brand through actions with spectators and drivers
Event Planner	To take care of the good functioning of the event as a whole

Marketing Plan

Audience	Responsible	Delivery/ Method/ Format	Due Date / Frequency	Communication Type	Objective of Communication	Deliverable
Project Manager, Project Team	Project Sponsor – Tim Mills	Face to Face	Once	Project Approval Meeting	– Review the project plan – Review the project requirements – Review the project roles and responsibilities	-Project Plan – Project Requirement lists – Agenda
Project Team	Project Manager	Face to Face	Once a week	Weekly Project Status Report	– Understanding of the project expectations – Project overview – Forecasting project budget, and schedule – Reporting project progress	– Project Scope Statement – WBS – Weekly project status report – Agenda
Mayor of Lynn – Judith F. Kennedy	Project Manager	E-mail	Once a week	Weekly Project Status Report	– Keeping the mayor informed about the project	– Weekly project status report
Project Sponsor – Tim Mills	Project Manager	E-mail, Phone	Once a week	Weekly Project Status Report	– Keeping the project sponsor informed about the project	– Weekly project status report –
Project Manager	Event Organizer	E-mail	Once a week	New ideas about the project	– Providing support, information organizational level	– Planned requirements list – Project organizational plan – Change request Form
Lynn Residents, and Community	Event Organizer	Newspaper, Social Media	Once	Announcement of the Australian Grand Prix	– Informing the community and residents about the project content	– Fliers – Newspaper – Social Media campaign
Vendors & Catering Suppliers	Event Organizer	E-mail, Phone	Once a month	Pre-commission Event Plan	– Discuss the community expectations from the vendors – Prepare the menu and cuisine	– Request list – List of the goods – Beverage menu – Food Menu
Artists & Performers	Event Organizer	E-mail	Once a month	Pre-commission Event Plan
Lynn PD and Security Service	Program Coordinator – Doneeca Thurston	Face to Face	Once	Pre-commission Event Plan	– Provide provision of the Australian Grand Prix – Monitors activities at the event and ensure people safety	– Safety requirement report – Event safety guide – Event safety checklist
Transportation Service	Associate Director- Pedro Soto	E-mail	Once	Pre-commission Event Plan	– Plan to transportation pick up and drop off locations – Provide the shuttle service	– The map of the shuttle service – Pick up and drop off locations
Regulators	Program Manager- Julia Midland	Face to Face, E-mail	Bimonthly	Required Permits	– Project legal-side requirements – Obtain the location of the event – Local requirements – Safety requirements	-Permission Document
Project Sponsor- Tim Mills, Project Team, Event Organizer	Project Manager	Face to Face	Once, the last week of the Project	Project Closure	– Discuss the Roll-out Plan – Review the feedback – Meeting agendas	-Performance Review – Lessons learned in documentation – Project closure report

Project Budget

The direct advantages to the Victorian economy are the expenses of interstate and overseas visitors who come to Victoria for the Grand Prix or to amplify their stay in Victoria, and the price of staying in Victoria for an occasion in Victoria. All interstate or remote places grand Prix expenses were deducted from this. This is summarized in the table below.

The project estimates also involve the following fixed costs where the fixed amount will be paid to the respective companies while signing the contract(Jones, 2014):

Activity	Cost (USD)	Description
Sign Contracts (participants)	$5,000	Confirming the artists with the Artists Management Company for the Murals. Here the company will be paid the entire fees in advance.
Sign Contracts (Entertainment)	$3,000	Here the event fee will be paid to the Entertainment Company in advance.
Sign Cleaning Contract	$3,500	Here the Cleaning company will be paid the fixed fees in advance while signing the contract.

Fees

The proposed Rule 50 regulates fees for the purposes of Article 37 of the Act. Section 37 allows AGPC to move the unmanned vehicle to a convenient region when parked in a chosen or certain access area in the course of a race. The proposed rate for the proposed rule is a unit charge of 20 ($279 for financial 12 months 2016-2017) for towing an automobile, daily or five fees whilst the automobile is not maintained in a convenient place. These charges are not consequences and reflect charges incurred through AGPC when it comes to car towing and garage. The cost baseline will only be changed when there is a change or changes in the scope statement, which also means that the project plan was not well-structured and planned(Kerzner, 2002). In this case, if the 10% contingency reserves are approved by the sponsor, the project doesn’t require any immediate changes to the cost baseline(Goldblatt, 1997); reversely, if the contingencies are not approved, we may cut down the cost by reducing expenses in Event Execution phases were the following example activities are taking an excessive amount of cost:

Name	Baseline Cost
Select Race Track	$2,520.00
Select and Confirm Track	$4,920.00
Publish on Social Media and On-site Marketing	$8,000.00

Work Breakdown Structure

The given schedule baseline leads to finish this project no later than  June 30^th, 2020, and the estimated baseline schedule is June 31, 2021, which is a day later than the projected finish date; There are two options for our team, first, talk to the sponsor and ask for an additional day, or second, go back and reschedule our planned activities to make certain adjustments to fit the time frame(Parent and Chappelet, 2017). The followings are the tasks whose duration could be revised and updated in the future:

Name	Baseline Duration
Select Racers	20 Days
Select and Confirm the Track	12 Days
Sign Contract for Entertainment	5 Days

Work Baseline Statement

The total estimated work baseline is 4,710.88 hours, which is greater than the actual completion hour of 4,449.68h by 261.2, which means the project team is not spending the right number of hours on their tasks.

Scope Baseline Statement

The project is to design and hold a two weeks event about an art festival named Australian Grand Prix. The duration of the project is from Sep 19, 2019, to Jun 30, 2020. And the budget of the project is about 150,000 US dollars. After the creation of the work breakdown structure, our major deliverables include community research, project management, event design, artist, food vendor, entertainment, event conduction, and clean-up. At present, after the cost and schedule estimation, the scope of the project has not changed.

Items may lead to change and adjustment of project scope baseline:

• After the schedule and cost estimation and submission, a one-day delay and an overrun of $6,014 were approved.
• The sponsor adds additional requirements, such as the construction of the park environment during the event.
• Sponsors’ requirements change, such as no need for entertainment activities other than art exhibitions.
• Event delay due to weather and other uncontrollable reasons.
• The sponsor’s budget has adjustment.

Gantt Chart

Task Name	Duration	Start	Finish
Australian Grand Prix	228.5 days	Thu 9/20/20	Tue 8/4/21
Event Initiation & Conception	34 days	Thu 9/20/20	Web 11/6/20
Community Research	9 days	Thus 9/20/20	Wed 10/2/20
Stakeholder Register	12 days	Wed 10/2/20	Fri 10/18/20
Project Charter	8 days	Fri 10/18/20	Wed 10/30/20
Deliverable Checklist	5 days	Wed 10/30/20	Wed 11/6/20
Event Definition & Planning	28 days	Wed 11/6/20	Fri 12/13/20
Project Management	18 days	Wed 11/6/20	Mon 12/2/20
Event Scope Management	8 days	Wed 11/6/20	Mon 11/18/20
Event Budget Plan	9 days	Mon 11/18/20	Thu 11/28/20
Event Schedule	9 days	Mon 11/18/20	Thu 11/28/20
Event Risk Management Plan	10 days	Mon 11/18/20	Fri 11/29/20
Event Communication Plan	8 days	Mon 11/18/20	Wed 11/27/20
Kick-Off Meeting	12 days	Thu 11/28/20	Fri 12/13/20
Event Execution & Monitoring	149 days	Mon 1/6/21	Thu 7/30/21
Event Design	115 days	Mon 1/6/21	Fri 6/12/21
Event Permits & License	20 days	Mon 1/6/21	Thu 1/30/21
Participants Management	29 days	Fri 1/31/21	Wed 3/11/21
Food Vendor Management	27 days	Thu 3/12/21	Fri 4/17/21
Music/Entertainment	22 days	Fri 1/31/21	Mon 3/2/21
Crowd Management	7 days	Wed 6/3/21	Thu 6/11/21
Marketing & Promotions	40 days	Mon 4/21/21	Fri 6/12/21
Event Conduction	74 days	Mon 4/21/21	Thu 7/30/21
Event Orientation	10 days	Wed 5/21/21	Tue 6/2/21
Event Set-up Plan	5 days	Wed 6/3/21	Tue 6/9/21
Operations Management	9 days	Wed 6/10/21	Mon 6/22/21
The Australian Grand Prix	21 days	Tue 6/23/21	Mon 7/21/21
Event Clean-Up	74days	Mon 4/21/21	Thu 7/30/21
Event Closure	11 days	Tue 7/21/21	Tue 8/4/21
Final Performance Report	8.67 days	Tue 7/21/21	Fri 7/31/21
Event Success Evaluation	11 days	Tue 7/21/21	Tue 8/4/21
Event Closure	11 days	Tue 7/21/21	Tue 8/4/21

Risk Management Plan

A risk management plan is a formal process for a group to identify, assess and deal with risk factors in a systematic manner. The Grand Prix will continue at Albert Park until 2023, and regulations remain an important safety tool for future events. The proposed rules are basically the same as the previous ones, with minor changes to increase clarity and modernize expressions and concepts (Veal & Burton, 2015).

Regulatory Environment beyond the Proposed Regulations

Assessing the fees and benefits of extra regulatory measures calls for an assessment of the regulatory environment if no guidelines are proposed. This “baseline” describes presently applicable legal guidelines and rules which may cowl the sports predicted of the proposed rules. Some of these can be relevant, consisting of land use guidelines, crook laws, and laws regarding principal sporting occasions.

Crowd Management and Public Safety

If no AGPC policies are proposed, they should construct on an existing casual crime matrix and crook regulation for insurrection manipulation purposes. These consist of the Victorian Criminal Act of 1958 (including belongings harm and civilian arrest provisions), the unlawful series and procession regulation of 1958, and normal regulation crimes together with rioting, plane, casual attack, and unlawful encounters.

The Summary of the 1966 Criminal Act contains many provisions for retaining public order. Victoria cops can intervene with or harass a ramification of activities in public, including:

• Indecent, obscene or threatening behavior,
• Blasphemy, ballads, artwork, flags, and different symbols
• A summary of activities that are naughty, impolite or offensive.

We can also add the extra prohibitions

• Wilful trespass
• Damaging fountains, shrines, monuments, statues, and other public structures
• Property destruction
• Obstructing traffic
• Criminal damage and entry

The 1958 Criminal Act additionally includes many provisions that may be applicable to the control of massive numbers of Grand Prix members and the preservation of public order in parks. Also this:

• Intentional violation of significant bodily harm
• The negligence causes serious injury

These regulations had been first created in 1996 and revised in 2006, as the policies for Victoria’s predominant sporting activities have changed with the advent of the Major Sports Events Act (MSEA) 2009. This law passes regulation of key aspects of predominant sporting occasions. Sporting activities such as shopping offers, crowd management, on-web page advertising, unauthorized marketing, and price tag resale. The Major Sports Events Act of 2009 presents all crowd manipulation and some hotfixes, but they are now not enabled in Grands Prix. It is considered useless to apply laws in this context because they offer a more structured set of controls for specific occasion situations. Only provisions of the Major Sports Events Act 2009 follow to the Australian F1 Grand Prix.

This competition has no other felony controls, however, it has precise provisions to make sure that the methods for organizing principal carrying events do not interfere with the walking of the Grand Prix. Several of the proposed policies provide authority to modify crowds, most of which might be duplicated within the 2009 Major Sports Events Act. In precise, unbought alcohol, prohibited gadgets, damage or damage to infrastructure, isolation ladders, access or exit, throwing or kicking projectiles, blocking off the view of citizens, or the use of speakers without permission. The rules for copy in the statute are nearly or exactly the same for the predominant sporting occasions of 2009.

Operating Without the Regulations

While the above regulatory matrix can empower a couple of stakeholders to clear up problems bobbing up from Grand Prix businesses, event organizers are the ones with most concerned about the safe and green operation of the event. It is not sufficient to provide to others. From solving common problems.

Some of the powers hooked up within the 1998 Royalland Reserve (Albert Park Reserve and Albert Reserve) are a part of the proposed guidelines (disturbance of vegetation and fauna, prohibition of business pastime). Please be aware that that is related to similar trouble. Based on this, it can be stated that the present regulatory matrix can be used to resolve those problems.

Conclusion

The Project Manager and the project team will carry out tests at planned periods at some stage in the task to make sure that all methods are being efficiently applied and achieved. The great supervisor will offer each day fine management and conduct technique audits on a weekly basis, monitor technique overall performance metrics, and guarantee all processes followed assignment and organizational requirements. If discrepancies are found, the fine supervisor will meet with the Project Manager and evaluation of the diagnosed discrepancies. The Project Manager will schedule regularly occurring undertaking, control, and report reviews. In these critiques, an agenda object will encompass a review of assignment techniques, any discrepancies and/or audit findings from the nice supervisor, and a discussion on process improvement tasks.

References

Goldblatt, J. J. (1997) Special events: best practices in modern event management. Van Nostrand Reinhold.

Jones, M. (2014) Sustainable event management: A practical guide. Routledge.

Kerzner, H. (2002) Strategic planning for project management using a project management maturity model. John Wiley & Sons.

Lewis, J. P. (1995) Project planning, scheduling, and control: A hands-on guide to bringing projects in on time and on budget. Irwin.

Masterman, G. (2014) Strategic sports event management. Routledge.

Mikulskienė, B. (2014) Research and development project management: study book.

Morris, P. W. and Hough, G. H. (1987) ‘The anatomy of major projects: A study of the reality of project management’.

Mulcahy, R. (2011) PMP Exam Prep: Rita’s Course in a Book for Passing the PMP Exam. RMC Publications, Inc.

Newell, M. and Grashina, M. (2003) The project management question and answer book. Amacom.

Parent, M. M. and Chappelet, J.-L. (2017) Routledge handbook of sports event management. Routledge.

PMP, J. F. (2014) The project management answer book. Berrett-Koehler Publishers.

Quinn, B. (2013) Key concepts in event management. Sage.

Turner, J. R. (2009) The handbook of project-based management: leading strategic change in organizations. McGraw-hill New York, NY.

Veal, A. J. and Burton, C. (2015) Research methods for arts and event management.

Appendix A

Approaches to assessing the financial impact of a primary occasion, the financial price of a huge event may be measured using direct costs, input-output modeling, computable general Equilibrium modeling (CGE), and /or cost-benefit analysis respectively. The input-output model assumes that a big investment inside the economic system, inclusive of keeping a huge event, can have a ripple impact on other industries, and increase in manufacturing, employment, and profits. In comparison, the CGE model assumes that the economy has restrained assets, and that massive investment, together with protecting a big event, can divert resources from other productive activities. In 2007, the Chief Auditor of Victoria made a public funding document on essential events. The auditor concluded that the input-output evaluation became insufficient for assessing the economic effect of major activities (that is, activities that receive more than $10 million in the funding of the government yearly). Under this approach, the estimated financial impact of the event is typically large than the estimate based on the CGE model. In 2005, AGPC outsourced the National Institute of Economic and Industry Research (NIEIR) to conduct a monetary evaluation of the Grand Prix the use of input-output evaluation. They estimate that gross state product (GSP) will boom from $1.563 million to $174.8 million due to the 2005 Grand Prix, with the next figures suggesting guided tourism ($9.1 million). As explained above, the input-output evaluation and CGE simulation use one of the methods and assumptions to degree the financial impact of major events, so the outcomes of the NIEIR and Audit Committee reports are not directly compared.

Appendix B

Compliance (Rules 41-46) Rule 41 allows authorized individuals to apply in violation of Rule 17 (alcoholic liquids) or Rule 18 (prohibited items) or in a manner inconsistent with Rule 17-36. You can request delivery of an item in a stated location (carried out inside a stated vicinity) or policies 39 and 40 (creative distribution or item sale). Rule 42 requires an authorized man or woman or police officer to inspect for the duration of the race and any baggage or different reservoirs that are intended to be carried or carried into the said place, and so forth allows you to make requests to those who intend or enter the place for opening bags using portable equipment. Anyone who refuses to conform to this request outside of this region may not enter the stated region in the course of their career. The maximum penalty for violating this rule is 20 penalty units. Rule 43 permits an authorized person or police officer to train or to leave a chosen vicinity or seat if she or he refuses to reveal a price ticket and the legal person or police officer can supply goods or merchandise. Rule 44 states that if a person in authority or a police officer unearths that there may be a justifiable cause for committing a crime in step with a sure rule, the authorized man or woman or police officer can present that you can order to go away, an included vicinity, or an area that is blanketed.

Appendix C

Regulation for a Specific Period (Regulations 47-49) Regulation 47 prohibits positive acts during a precise length (as described in Rule 5, which begins 12 weeks before the care duration and it ends in 4 weeks). This can interfere with secure and orderly painting performance in declared regions, along with unauthorized admission to work areas. The most penalties for violating this rule is 20 penalty units. Rule 48 permits a certified character or police officer to train a person to go away marketed vicinity if he or she interferes with, or compromises the provision of a commercial enterprise or service. The maximum penalty for violating this rule is 20 penalty units. Rule 49 presents for the exclusion of certain durations at certain places, which prevent a person from working effectively and orderly for a unique length at positive locations.